January 2007

GOVERNMENT & COMMUNICATIONS
Attorney general: NSA spy program to be reformed
Pulling the Plug on Anti-Chavez TV
Feds plan global Net freedom event

FCC MEETING RECAP & MORE
Martin: FCC Needs To Move on Cable Caps
FCC's proposals aim to protect phone records
FCC Enforcement Bureau Lists Accomplishments
FCC Meeting Presentations
FCC Releases New Telephone Subscribership Report
Non-Commercial Educational radio station filing period scheduled for this year
Future of Music Coalition Statement on FCC Payola Settlement
FCC Scrambles for an Answer
Sirius/XM team up on FCC satellite repeater rules

OWNERSHIP
Democratic Gains Alter Media Ownership Debate
Tribune Draws Three Offers, All Short of Original Hopes
Clear Channel Sale Is Threatened As Shareholder Discontent Mounts

INTERNET/BROADBAND
Voters use Internet more, big role seen in 2008
Web newspaper blog traffic triples in December
San Francisco Wi-Fi Report Kicks up Dust
Cable Operators to Spend $80 Billion to Expand Network Bandwidth
Canada Sleeps Through War to 'Save the Internet'

KIDS & MEDIA
FTC Chairman Wants Marketers to Shape up
Hollywood Rethinks Its Ratings Process

QUICKLY -- "Digital Destiny"; A Powerful Media Can Stop a War; Memo
to the Media: Extreme Weather Is Linked to Global Warming; National
Archives digitizes documents; Online music sales doubled in 2006;
Verizon: Virginia Should Deregulate; New Spam Trick; Attack Of The
Tech-Savvy Toddlers

GOVERNMENT & COMMUNICATIONS

ATTORNEY GENERAL: NSA SPY PROGRAM TO BE REFORMED
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
The Bush administration will substantially alter its controversial
domestic surveillance program by seeking approval for wiretaps from a
secret court, Attorney General Alberto Gonzales said Wednesday. The
surprise announcement by AG Gonzales said President Bush has agreed
that "any electronic surveillance that was occurring" under the
program will be conducted subject to the approval of the Foreign
Intelligence Surveillance Court in Washington, D.C. The program is
conducted by the National Security Agency. In a two-page letter to
the U.S. Senate's Judiciary committee, AG Gonzales did not specify
what prompted the abrupt policy change. Gonzales did say that it took
"considerable time and work" for the Justice Department to devise a
method that suited both prosecutors and the judges on the court. The
change appears to represent a concession to critics of the NSA
program, who have charged that it was illegal and unconstitutional
for the government to spy on Americans without any judicial
oversight. The Bush administration claims that only international
communications involving someone with ties to terrorism are targeted.
It's not clear if the letter was prompted by legal or political
concerns. AG Gonzales' announcement came less than 24 hours before he
is scheduled to appear before the now Democrat-controlled Senate for
a public hearing about Justice Department activities.
http://news.com.com/Attorney+general+NSA+spy+program+to+be+reformed/2100...
* See the letter to the Senate Judiciary Committee:
http://www.cdt.org/security/20060117agletter.pdf
* Wiretaps Submitted to Court Review, Questions Remain
In an important concession, the Bush Administration has said that
going forward, it will obtain court orders for wiretapping inside the
United States, abandoning a program of warrantless surveillance
secretly launched by the President in 2001. The Center for Democracy
& Technology welcomes this announcement. It is a victory for the
Constitution and will strengthen the national security. However, the
Attorney General's cryptic letter announcing the change leaves many
questions unanswered. Further congressional oversight and decisions
on the merits of various pending lawsuits are still needed.
http://www.cdt.org/
* Warrantless Wiretaps to Cease
http://online.wsj.com/article/SB116906785507379336.html?mod=todays_us_pa...
* Court Will Oversee Wiretap Program
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/17/AR200701...
* Court to Oversee U.S. Wiretapping in Terror Cases
http://www.nytimes.com/2007/01/18/washington/18intel.html?ref=todayspaper
* White House Retreats Under Pressure
http://www.nytimes.com/2007/01/18/washington/18assess.html
* A Spy Program in From the Cold
http://www.nytimes.com/2007/01/18/opinion/18thu1.html
* Court to oversee wiretap program
http://www.usatoday.com/printedition/news/20070118/1a_lede18_dom.art.htm
* U.S. ceases warrantless spy operation
http://www.latimes.com/news/printedition/front/la-na-spying18jan18,1,675...

PULLING THE PLUG ON ANTI-CHAVEZ TV
[SOURCE: Washington Post, AUTHOR: Juan Forero]
As President Hugo Chavez accelerates his country's shift toward
"21st-century socialism," a decision not to renew the broadcast
license of Radio Caracas Television (RCTV) is among the government's
more dramatic steps, and one that has caused serious concern among
free-press advocates. While Venezuelan officials have accused the
54-year-old station of having collaborated with organizers of a 2002
coup against President Chavez, the Committee to Protect Journalists
in New York, the Organization of American States and the Catholic
Church have warned that press freedoms in Venezuela are in danger.
The case has attracted widespread attention from officials in
Washington and Latin America, for whom the non-renewal of a license
has echoes of right-wing dictatorships of the past, when newspapers
and broadcasters were closed if they veered from the party line.
Though self-censorship and slayings of journalists remain common,
particularly in Colombia and Mexico, the closing of a media outlet
for political reasons has not occurred in years. Inside RCTV, actors
make racy soap operas about love gone bad while an influential
television host pillories President Chavez. Outside the station, none
of that sits well with Alberto Carias, a beefy man with a bullhorn
whose agitated followers promise that the days of RCTV are numbered.
He makes no pretense about who made the decision -- the president,
who is poised for sweet revenge against one of his most dogged
antagonists, known here by its call letters, RCTV. "Here they
practice yellow journalism, treacherous journalism that goes against
the people's rights," Carias told a crowd earlier this week. And
then, discussing the entertainment side, he said: "The children are
the ones affected for many years by the sex, by the violence of these
programs that go against the morality of children, that go against
the morality of the Venezuelan people."
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/17/AR200701...
(requires registration)
* Victim of His Power Grab
Chavez's Nationalization Disillusions Utility-Owner AES
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/17/AR200701...
(requires registration)

FEDS PLAN GLOBAL NET FREEDOM EVENT
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
[Commentary] Fury over the now-notorious Internet censorship
practices of countries like China -- and the willingness of American
firms, at times, to do their bidding -- may have quieted somewhat
after a fiesty daylong congressional hearing last winter, but the
U.S. government is preparing a renewed spotlight on the issue. On
January 30, the State Department plans to hold an afternoon
conference exploring the topic at its Washington D.C. headquarters,
Ambassador David Gross, who coordinates international
telecommunications and information policy for the government, said
Tuesday. The goal of the event is to drum up ways to "preserve the
Internet as being a conduit for the free flow of information," Gross
said. The agency is just starting to finalize its plans and has not
yet issued invitations, but it hopes representatives from Internet
companies, non-governmental organizations and academia will
participate, Gross added.
http://news.com.com/2061-10796_3-6150586.html?tag=nefd.aof

FCC MEETING RECAP & MORE

MARTIN: FCC NEEDS TO MOVE ON CABLE CAPS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
FCC Chairman Kevin Martin said Wednesday that the FCC needed to move
on its year-long review of cable ownership caps. In a meeting with
reporters after the FCC's annual review of the previous year, Martin
pointed out that the proceeding was opened in 1999, and said he had
told his colleagues on the commission that it should either proceed
to conclusion on the item as a stand-alone or, if the issues were
similar enough, roll it into the ongoing media ownership proceeding.
Chairman Martin had not timetable for when the ownership proceeding
would be completed, pointing out that the FCC had held just 2 of six
planned field hearings and still had 10 studies to deal with, though
he said that he was looking to hold the next hearing in February, if
possible, and that the studies should be completed this spring.
Chairman Martin said he was fine with either dealing with cable as a
stand-alone or rolled into the larger proceeding, but that it was
time to do something on cable ownership. When asked why the FCC
didn't have a Y2K-like plan in case the DTV transition hits a snag
and viewers could lose service after the hard date of Feb. 17, 2009,
Martin said he thought the FCC had taken steps. He cited his push for
multicast must-carry, though not directly, saying "trying to make
sure that all free, over-the-air broadcasting should be carried by
the other platforms is one of the ways we make sure to ease that
transition to digital broadcasting."
http://www.broadcastingcable.com/article/CA6408028?title=Article&spacede...

FCC'S PROPOSALS AIM TO PROTECT PHONE RECORDS
[SOURCE: Reuters, AUTHOR: Karey Wutkowski]
Federal Communications Commission Chairman Kevin Martin said on
Wednesday he has proposed two new ways to prevent telephone records
from ending up in the wrong hands: New passwords and limiting access
for third party groups. The move follows the high-profile case in
which Hewlett- Packard Co. admitted that investigators it hired used
false identities to obtain telephone records of directors, employees
and journalists. The plan would require telephone carriers to get a
password from a customer before providing access to the records, or
for a service representative to call the customer back if there was
no password or the customer could not remember it, he said. Chairman
Martin's proposal also includes requiring carriers to get permission
from a customer before sharing the data with a third party, like a
marketing partner, he said. Current practice allows for a consumer to
opt out of such sharing. The plan is circulating among the four other
FCC commissioners and Martin said he would like to complete a vote by
the agency's February 23 open meeting.
http://today.reuters.com/news/newsarticle.aspx?type=politicsNews&storyid...

FCC ENFORCEMENT BUREAU LISTS ACCOMPLISHMENTS
[SOURCE: Broadcasting&Cable]
The FCC's Enforcement Bureau chief briefed the commissioners on its
chief accomplishments in 2006 as part of a Wednesday status meeting.
Its two main accomplishments dealing with children and content,
according to Bureau Chief Kelly Monteith, was the creation of a
Web-based complaint form for indecency, and the March omnibus order
proposing fines against a number of broadcasters. That March order
includes the profanity decisions -- though no fines were issued --
that broadcasters are currently challenging in federal court.
http://www.broadcastingcable.com/article/CA6407928?title=Article&spacede...

FCC MEETING PRESENTATIONS
[SOURCE: Federal Communications Commission]
At the FCC, it is customary now at the first open meeting of the year
to recap the accomplishments and priorities of each of the bureaus.
At the URL below, find links to the presentations by senior agency
officials regarding implementations of the agency's strategic plan
and a comprehensive review of FCC policies and procedures.
http://www.fcc.gov/realaudio/presentations/2007/011707/

FCC RELEASES NEW TELEPHONE SUBSCRIBERSHIP REPORT
[SOURCE: Federal Communications Commission]
And you thought nothing exciting happens in January... The Federal
Communications Commission released its latest report on telephone
subscribership levels in the United States. The report presents
subscribership statistics based on the Current Population Survey
(CPS) conducted by the Census Bureau in July 2006. The report also
shows subscribership levels by state, income level, race, age,
household size, and employment status. highlights of the stats from
July 2006: 1) The telephone subscribership penetration rate in the
U.S. was 94.6%, an increase of 0.6% over the rate from July 2005. 2)
The telephone penetration rate for households with incomes below
$20,000 was below 93%, while the rate for households with incomes
over $100,000 was over 98%. 3) Among the states, the penetration
rates ranged from a low of 88.4% in Indiana to a high of 97.8% in New
Hampshire. 3) The penetration rate for unemployed adults was 91.4%,
while the rate for employed adults was 95.8%.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269511A1.doc
* See the full report
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-269512A1.pdf

NON-COMMERCIAL EDUCATIONAL RADIO STATION FILING PERIOD SCHEDULED FOR THIS YEAR
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
The Federal Communications Commission will accept applications for
new full power non-commercial educational (NCE) FM radio station
licenses sometime this year, perhaps in late spring. Typically, the
FCC gives between one and three months notice before opening the
filing window, which will likely last only five days. These full
power NCE stations will lie between 88.1 FM and 91.9 FM, and range
from 100 to 100,000 watts, depending on location. Full power stations
are superior to low power stations because they are protected from
interference and cannot be bumped off the air as new stations emerge.
This year's filing window, disclosed by the agency last August, will
end the FCC's six-year freeze on new full power applications. This
window is a rare opportunity for non-profits and educational
institutions, but interested parties must devote energy and money to
submit an acceptable application. Further, the FCC can only accept
applications for frequencies that do not conflict with existing
stations, which, for the most part, no longer exist within 30 miles
of the largest 100 cities in the U.S. To complete a valid
application, applicants need an engineer to perform a frequency
search, which normally costs over $2000. Also, the likelihood of
running into competition over a given frequency is high, so most
applicants rely on the services of an FCC attorney. If awarded a
license, radio station start-up costs run between $50,000 and
$250,000. To increase the chances of receiving a license, one entity
may file several applications. Christian organizations have relied on
this technique in the past. For example, in a 2003 filing window for
FM translators, several Christian organizations filed thousands of
applications to rebroadcast radio ministries. As they have in the
past, many Christian groups are publicizing the upcoming NCE filing window.
http://www.lasarletter.net/drupal/node/284

FUTURE OF MUSIC COALITION STATEMENT ON FCC PAYOLA SETTLEMENT
[SOURCE: Future of Music Coalition]
Payola has been the radio and music industry's dirty secret for
decades. While the Federal Communications Commission avoided taking
action on payola, leaders like Commissioner Jonathan Adelstein,
Senator Russ Feingold and then-New York State Attorney General Eliot
Spitzer pushed for progress. Now, the FCC is reported to be on the
brink of pushing through a negotiated consent decree with the
broadcast industry. This consent decree could bring to an end the
broad investigation that the FCC announced in the aftermath of the
Spitzer investigation. Future of Music Coalition strongly believes
that any successful settlement must have three components: 1. A
basic framework that outlines how the local independent music
community can interact with the commercial radio industry to gain
access to commercial airplay; 2. A credible oversight plan that
ensures the negotiated framework can be enforced in a way that will
lead to true reform; and 3. serious penalties that hold the broadcast
industry responsible for years of abusive practices that have so
damaged the music community and the public. Any deal that does not
address all three points must be judged a failure.
http://www.futureofmusic.org/news/FCCpayolaconsentdecree07.cfm

FCC SCRAMBLES FOR AN ANSWER
[SOURCE: Los Angeles Times, AUTHOR: Editorial]
[Commentary] It is hardly surprising that the Federal Communications
Commission wants to provide a more level playing field for TiVo in
its battle against the cable-owned set-top boxes in your home. At
stake is more than just the public's ability to avoid paying a
monthly fee for a converter box. Companies like TiVo are innovating
far more rapidly and aggressively than the cable industry on a number
of fronts, including the way people find shows they want to watch,
the extension of TV to portable and remote devices and the ability of
advertisers to target and personalize their pitches. Forcing cable
operators to use security cards in millions of new converter boxes
annually should at the very least ensure that the cards are
plentiful, easy to obtain and well understood by cable employees. It
should also reduce the cost of the system, which cable operators
estimate at $75 a box but competitors say is closer to $40. Most
important, it will pressure cable operators to finish work on
downloadable security, if for no other reason than to cut their own
costs. And it may even speed the development of standards for
"cable-ready" devices that can do everything that a cable operator's
converter boxes do. Refusing Comcast's request for a waiver was a
good start for the FCC, but these rules should apply to all pay-TV
providers, whether they use cables, phone lines or satellites.
http://www.latimes.com/news/printedition/asection/la-ed-settop18jan18,1,...
(requires registration)

SIRIUS/XM TEAM UP ON FCC SATELLITE REPEATER RULES
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
As debate continues over a possible merger between Sirius and XM
satellite radio, XM has filed comments with the Federal
Communications Commission backing Sirius's proposed rules for
satellite repeaters and wireless transmitters. Final regulations
governing these two technologies "should take into account the
well-established hazard that terrestrially-based services can pose to
adjacent band satellite services," two attorneys for XM Radio Inc.
wrote to the FCC on January 5th in support of Sirius' proposals. XM
filed the statement to back a Sirius petition submitted on October
17th, 2006 that outlines broadcasting rules for satellite Digital
Audio Radio Service (DARS or SDARS) repeaters and Wireless
Communications Service (WCS) transmitters. Both XM and Sirius use
DARS repeaters to reach customers whose receivers cannot receive a
direct satellite signal. But WCS broadcasts, used to pinpoint the
location of cell phone users, can sometimes interfere with satellite repeaters.
http://www.lasarletter.net/drupal/node/285

OWNERSHIP

DEMOCRATIC GAINS ALTER MEDIA OWNERSHIP DEBATE
[SOURCE: Technology Daily 1/16, AUTHOR: David Hatch]
For television, radio and newspaper outlets seeking regulatory relief
from the FCC, the timing of the agency's comprehensive review of
ownership limits could not be worse. When FCC Chairman Kevin Martin,
a deregulatory-minded Republican, initiated the review last year, the
business-friendly GOP controlled both chambers of Congress. But now
the Democrats are in charge, and some are flexing their muscle on the
issue. "I think the election [result] is going to add additional
challenges" for stations seeking relief, National Association of
Broadcasters spokesman Dennis Wharton conceded. "If Martin had known
the Democrats were going to take over Congress, certainly he would
have moved things along faster," quipped Andrew Schwartzman,
president and chief executive officer of the public-interest law firm
Media Access Project, which opposes easing the rules. Schwartzman
predicted that the agency, which will issue new reports on media
ownership this spring, will not conclude its review until the third
quarter of 2007. FCC Commissioner Copps told Technology Daily that as
part of the review he will press for more public-interest obligations
for broadcasters, which will be capable of offering multiple stations
when they switch to digital signals in early 2009. Commissioner Copps
suggested that increased consolidation may be fueling more gratuitous
violence and sex on television as media conglomerates appeal to the
lowest common denominator.
http://www.njtelecomupdate.com/lenya/telco/live/tb-XJZC1169062405650.html

TRIBUNE DRAWS THREE OFFERS, ALL SHORT OF ORIGINAL HOPES
[SOURCE: Wall Street Journal, AUTHOR: Sarah Ellison sarah.ellison( at )wsj.com]
At least three groups, including the Chandler family and a pairing of
Los Angeles billionaires Ron Burkle and Eli Broad, submitted sharply
varying proposals for newspaper and TV empire Tribune Co. by last
night's bid deadline, giving the company's board the difficult task
of deciding how to proceed. None of the bidders is offering to pay a
premium for all of Tribune, the type of offer the company's board and
the Chandler family were hoping to get when the company put itself on
the auction block in September. Even so, the board will likely come
under pressure from shareholders to pursue some dramatic action. The
Chandler family's offer is seen as a last-ditch effort to rescue the
value of its stake in the company. Under the proposal, which hadn't
been finalized, the Chandlers and private-equity partners would buy
the newspapers, which include the Los Angeles Times and Chicago
Tribune, while Tribune would spin off its TV stations. The family's
advisers have received a commitment from one private-equity firm for
half of the money needed for the deal, according to people familiar
with the proposal, but are trying to find additional investors. The
Chandlers envision holding 51% of the newspapers, while partners
would hold the remainder. Burkle and Broad proposed a leveraged
recapitalization, under which they would borrow roughly $10.5 billion
and offer Tribune shareholders $27 a share in a cash dividend that
would leave shareholders with equity valued at $7 a share. The
valuation of the proposal could vary, depending on what value would
be put on existing shares, but the proposal says the offer is worth
roughly $34 a share. The two men are also offering $500 million in
cash, which would give them roughly 34% of equity control of the
company. The company also received at least one proposal from a
private-equity firm interested in the company's TV stations.
http://online.wsj.com/article/SB116906723798879341.html?mod=todays_us_pa...
(requires subscription)
* No Bidders Announced for Tribune Co.
http://www.washingtonpost.com/wp-dyn/content/article/2007/01/17/AR200701...
* Chandlers, Moguls in Battle for Tribune
http://www.latimes.com/news/printedition/front/la-fi-tribune18jan18,1,74...

CLEAR CHANNEL SALE IS THREATENED AS SHAREHOLDER DISCONTENT MOUNTS
[SOURCE: Wall Street Journal, AUTHOR: Dennis K. Berman
dennis.berman( at )wsj.com and Sarah McBride]
Large shareholders of Clear Channel Communications Inc. have begun
voicing resistance to the big radio firm's $18 billion sale, dissent
that could jeopardize the transaction. In recent weeks, Clear
Channel's largest holder, Fidelity Management & Research Co., has
made its displeasure known about the company's sale to Thomas H. Lee
Partners and Bain Capital Partners, according to people familiar with
the matter. A number of the company's top 10 holders also have been
upset about the terms, these people said, and have been talking to
the company about their positions. The private-equity firms are in a
tight spot because the transaction requires that two-thirds of
outstanding votes be in favor. Given that a percentage of shares
usually are not voted in merger approvals, a dissenting group with a
relatively small number of shares could theoretically squelch the transaction.
http://online.wsj.com/article/SB116909478729079956.html?mod=todays_us_mo...
(requires subscription)

INTERNET/BROADBAND

VOTERS USE INTERNET MORE, BIG ROLE SEEN IN 2008
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
Americans turned in growing numbers to the Internet for political
news and information during the 2006 U.S. congressional campaign, as
Web videos and blogs became more widespread, a report on Wednesday
said. Fifteen percent of those surveyed said they relied on the Web
for the bulk of their political news in 2006, up from 7 percent in
the 2002 congressional campaign but down 2 points from 2004, when
there was also a presidential race. Presidential contests tend to
draw more intense interest. "We might begin to see 2008 as the year
when the distinction between 'virtual' politics and 'real life'
politics becomes much less meaningful," said Lee Rainie, director of
the Pew Internet Project and co-author of the report.
http://today.reuters.com/News/newsArticle.aspx?type=internetNews&storyID...
See "Election 2006 Online"
http://www.pewinternet.org/PPF/r/199/report_display.asp
* Internet Gains for Midterm Campaign News
http://hosted.ap.org/dynamic/stories/T/TECHBIT_POLITICS_ONLINE?SITE=MATA...

WEB NEWSPAPER BLOG TRAFFIC TRIPLES IN DECEMBER
[SOURCE: Reuters]
The number of people reading Internet blogs on the top 10 U.S.
newspaper sites more than tripled in December from a year ago and
accounted for a larger portion of overall traffic to those sites,
according to data released on Wednesday. Unique visitors to blog
sites affiliated with the largest Internet newspapers rose to 3.8
million in December 2006 from 1.2 million viewers a year earlier,
tracking firm Nielsen//NetRatings said. Some of the growth stems from
newspapers adding new blogs to their site that were not running in
2005, Nielsen//NetRatings said, as well as readers' greater
familiarity with the reading format.
http://today.reuters.com/News/newsArticle.aspx?type=internetNews&storyID...

SAN FRANCISCO WI-FI REPORT KICKS UP DUST
[SOURCE: Broadband-Today.com, AUTHOR: Joni Morse]
San Francisco's municipal Wi-Fi project doesn't pass the sniff test
as administered by city budget analyst Harvey Rose. In a new report
carried out at the request of the city's Board of Supervisors, Rose
concludes, "it may be fiscally feasible to build a municipally-owned
wireless network." However, Rose also notes, "to assure initial
fiscal feasibility and sustain future fiscal feasibility, the city
would need to continually work to contain and manage financial risk
in the future in order to maintain a viable wireless service for all
of San Francisco." Rose says he reviewed projected wireless network
capital expenditure needs and operational costs and weighed the
estimates against projected revenue streams to determine the
project's fiscal feasibility. San Francisco's Board of Supervisors,
whose majority approval is needed in order for a network to be
constructed, has been speaking out against Mayor Gavin Newsom's plan
to put EarthLink in charge of building and maintaining the city's
Wi-Fi network. The board was presented with a contract proposal
agreed upon by the mayor's office and EarthLink last week, and they
now have a little less than six months to vote on the
contract. Members of the board have complained publicly that the
mayor's office didn't adequately consider the viability of a plan
that involved a city-owned network. The debate over whether the city
should own the network or not comes down to two main factors: how
much control the city ultimately will have over what services are
offered to its citizens, especially its disadvantaged residents; and
how the city would pay for the system. Rose's report determined that
the fiscal impact of city ownership of the Wi-Fi network ranges from
an annual funding shortfall of more than $1.44 million to an annual
revenue gain of about $923,000.
http://www.broadband-today.com/article/CA6407505.html?nid=2907

CABLE OPERATORS TO SPEND $80 BILLION WORLDWIDE THROUGH 2012 TO EXPAND
NETWORK BANDWIDTH
[SOURCE: ABI Research press release]
The accelerating adoption of high-definition television, multiplayer
gaming, and other data-intensive services is leading to a "bandwidth
crunch" that will require cable operators to upgrade the capacity of
their digital networks. A number of solutions are available;
according to a new study from ABI Research, the total revenue from
this market is expected to exceed $24 billion in 2012 and will amount
to $80 billion in total investment from 2007 through 2012. "The
looming bandwidth crunch, which is more pronounced in the United
States than elsewhere due to its deeper penetration of digital cable,
will present different problems to different operators, and each will
need to find its own bandwidth upgrade formula," says principal
broadband analyst Michael Arden. The severity of the crunch will
depend on factors such as the speed with which HDTV is adopted in
particular markets, and the extent to which cable operators add extra
HDTV channels. In practice, says the study, network upgrades will
naturally start in the major urban centers and gradually spread to
less densely-populated regions.
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news...

CANADA SLEEPS THROUGH WAR TO 'SAVE THE INTERNET'
[SOURCE: The Tyee, AUTHOR: Bryan Zandberg]
[Commentary] Known for their abnormal sleeping habits, Canadians are
missing a really good policy debate. One and a half million Americans
have signed a petition for the US Congress in support of Network
Neutrality -- but only 217 Canadians have done the same. It's not
that the fight over net neutrality doesn't matter in Canada. At issue
in the frozen tundra, as in the United States, is whether telecom
companies can favour some Internet sites over others by charging
different rates to different customers and making some sites much
easier to access than others. Critics say the practice threatens the
Internet's level playing field and would stifle smaller independent
voices on the web. At stake is nothing less than democratic speech in
the Canadian modern era, says Kevin McArthur. "I mean this is The
People vs. Larry Flint all over again, only this time it's digital."
Odd then that public debate on the issue in Canada has been a
non-starter. Especially when, between the two countries, it's Canada
where the World Wide Web is most poised to become the latest
plaything of the rich and the powerful.
http://thetyee.ca/Mediacheck/2007/01/17/NetNeutrality/

KIDS & MEDIA

FTC CHAIRMAN WANTS MARKETERS TO SHAPE UP
[SOURCE: AdAge, AUTHOR: Brooke Capps]
Federal Trade Commission Chairman Deborah Platt Majoras offered
markerts advice in the form of New Year's resolutions at the
Association of National Advertisers's Advertising Law and Business
Affairs Conference. "Advertising is a critical part of our
consumer-centric competition-based economic system," she said in her
keynote, "so much so that false or misleading advertising which
distorts the system can't be tolerated." She began by asking
advertisers to "trim the fat in marketing to kids." While Ms. Majoras
is not interested in placing blame for rising childhood obesity
rates, she is interested in action. She said she is pleased so far
with the self-regulatory actions by marketers to shift the focus of
advertising to children under the age of 12 to encourage healthier
eating habits.
http://www.tvnewsday.com/link/?id=9723

HOLLYWOOD RETHINKS ITS RATINGS PROCESS
[SOURCE: New York Times, AUTHOR: David Halbfinger]
Stung by a low-budget documentary that assailed the movie ratings
system last year, motion picture industry officials are vowing to
make the system more transparent to filmmakers and more accessible to
parents. The most substantive rule change will let aggrieved
filmmakers refer on appeal to other movies -- for example, to argue
that because another film was permitted to run a similar scene, their
film should be permitted to as well. Until now, directors were barred
from citing other films when appearing before the appeals board. But
ratings officials decline to say that they will cede to precedent;
the "context of the entire film" will still guide their decisions.
Officials of the Motion Picture Association of America, its
Classification and Ratings Administration and the National
Association of Theater Owners plan to meet with filmmakers and
producers Monday in Park City, Utah, at the Sundance Film Festival to
discuss other tweaks to the ratings system.
http://www.nytimes.com/2007/01/18/movies/18rati.html
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QUICKLY

"DIGITAL DESTINY"
[SOURCE: The New Press press release]
You heard Bill Moyers endorse it in Memphis, but you weren't sure you
wanted to wait in line to get a signed copy... Jeff Chester's new
book, Digital Destiny: New Media and the Future of Democracy, was
published this month by The New Press. Digital Destiny warns that the
Internet's potential to serve as a diverse and democratic medium in
the U.S. is now threatened by largely invisible, but powerful,
political and economic forces. It describes how the nation's largest
telephone and cable companies have lobbied the Bush Federal
Communications Commission to eliminate the key federal rule that has
enabled the Internet to flourish as a dynamic medium of expression
and commerce. Digital Destiny reveals how a stealth system of
interactive data collection increasingly threatens our privacy --
both online and from the new U.S. system of digital television. The
book exposes how each of us online are being digitally "shadowed" by
powerful, intrusive technologies -- including virtual reality and
artificial intelligence. The goal of digital advertising is to foster
"immersive" relationships with products, brands, and soon, even
politicians. Author Chester warns that new media
personalized-marketing practices threatens to "brandwash" the public,
leading to serious consequences for consumers and the environment.
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/0...

A POWERFUL MEDIA CAN STOP THE WAR
[SOURCE: AlterNet, AUTHOR: Jane Fonda]
[Commentary] What would the world look like if the female half of the
population had an equal share in the media? This commentary is
adapted from a speech she delivered January 14 at the annual
conference sponsored in Memphis by the Free Press, a national,
nonpartisan organization that works to reform the media.
http://www.alternet.org/mediaculture/46820/

MEMO TO MEDIA: EXTREME WEATHER IS LINKED TO GLOBAL WARMING
[SOURCE: AlterNet, AUTHOR: Paul Rogat Loeb]
[Commentary] Except in the case of Katrina, most major media outlets
have treated America's extreme weather events as if they were wholly
separate from the broader issue of climate change.
http://www.alternet.org/mediaculture/46801/

NATIONAL ARCHIVES DIGITIZES DOCUMENTS
[SOURCE: Associated Press, AUTHOR: Dan Caterinicchia]
Anyone interested in finding out who the FBI was investigating before
it became the FBI or seeing the works of noted Civil War photographer
Mathew Brady will soon be able to do so digitally. Footnote Inc.
already has digitized 4.5 million pages of historical records and
recently signed an agreement with the National Archives to digitize
millions more. Initially, subscriptions cost $99.95 annually, $9.95
monthly or $1.99 per image through Footnote's Web site. Digitized
materials will be available for free by Feb. 6 at two facilities in
the Washington area and at regional locations in 11 states, according
to Archives' spokeswoman Laura Diachenko.
http://hosted.ap.org/dynamic/stories/T/TECHBIT_DIGITAL_RECORDS?SITE=CASR...

ONLINE MUSIC SALES DOUBLED IN 2006
[SOURCE: Associated Press, AUTHOR: Jane Wardell]
Global online music sales nearly doubled in 2006 to about $2 billion,
or 10 percent of all sales, but failed to compensate for an overall
decline in sales of CDs, the global music industry trade body said
Wednesday. The International Federation of the Phonographic Industry,
or the IFPI, also said it would move to sue Internet service
providers if they continued to allow identified digital music pirates
-- a costly scourge of the industry -- to use their networks.
http://hosted.ap.org/dynamic/stories/D/DIGITAL_MUSIC?SITE=CACRU&SECTION=...

VERIZON: VIRGINIA SHOULD DEREGULATE
[SOURCE: Multichannel News]
Verizon Communications asked the Virginia State Corporation
Commission to reduce regulation on its retail services. The telco
said action by the agency would enable it to "respond quickly to
consumer demands, offer new services and bundles, provide
leading-edge technology and respond to competitors' packaging and pricing."
http://www.multichannel.com/article/CA6408096.html?display=Breaking+News

NEW SPAM TRICK: MIMIC LEGIT NEWSLETTERS
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
As if it isn't hard enough to sneak Headlines past your spam
filters... Spammers have something new in their bag of tricks. Those
ubiquitous Viagra ads have been disguising themselves as e-mail
newsletters, the kind you get to find out the latest airline deals or
keep up with important developments in the communications policy
world. Spammers haven't actually broken into legitimate marketers'
computer systems to send out the messages. Rather, like the phishing
scams that lift the code off the real Web sites of financial
institutions, spammers have tweaked legitimate e-mail and sent them
through normal spam channels. The technique appears aimed at
bypassing human and software controls. Recipients might not
immediately realize they are opening spam, and anti-spam filters
might not be able to aggressively block them for fear of blocking
legitimate newsletters as well, anti-spam experts say.
http://hosted.ap.org/dynamic/stories/T/TECHBIT_NEWSLETTER_SPAM?SITE=WCNC...

ATTACK OF THE TECH-SAVVY TODDLERS
[SOURCE: InformationWeek, AUTHOR: KC Jones]
Kids as young as 2 years old are downloading content to cell phones,
computers, and portable digital music players, according to a report
from NPD Group. About 15% of 2- to 5-year-olds use cell phones and
62% of 11- to 14-year-olds use the devices. More than one in 10
children download content by the time they are 7 years old, 22%
download by age 10, and 50% download at 14. Downloading games is the
most prevalent activity, while 25% of children watch downloaded
movies, television, music videos, or streaming video content.
http://www.informationweek.com/news/showArticle.jhtml?articleID=196901269
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Monday through Friday, this service provides updates on important
industry developments, policy issues, and other related news events.
While the summaries are factually accurate, their often informal tone
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Headlines are compiled by Kevin Taglang headlines( at )benton.org -- we
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